Bitcoin (BTC), the largest cryptocurrency by market cap, may rally in October despite a bearish start to the month. Three signs point to a potential upswing. As of this writing, BTC is trading at $62,311.60, down 0.6% in the past 24 hours but up 1% over the last seven days.
October has historically been a bullish month for Bitcoin. According to Coinglass data, Bitcoin gained 28.52% in October 2021 and 39.93% in October 2022. So far in October 2024, the cryptocurrency has declined 1.65%, but it has surged 123% in the past year, according to Coingecko data.
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If Bitcoin follows this general “Uptober” trend, there is a strong possibility of a bullish turn and a push towards the $69,000 resistance level. However, this is not a guarantee, as BTC fell 3.83% and 12.95% in October 2018 and 2014, respectively.
Another reason for a possible surge could be the Federal Reserve’s anticipated rate cuts to 50 bps. Lower interest rates often lead investors to seek higher-risk assets, including equities and Bitcoin.
Furthermore, institutional interest in Bitcoin continues to grow with the approval of spot Bitcoin ETFs and companies like Microstrategy and Metaplanet actively accumulating BTC.
Bitcoin Price Analysis Shows Consolidation
The Bitcoin price analysis using the chart provided by TradingView below confirms that Bitcoin has been trading in the $54,000 and $64,000 price levels since the past few weeks and a breakout is yet to be confirmed.
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The Relative Strength Index (RSI) currently sits at 52.33, indicating that bulls are generally in control and suggesting a higher probability of further price increases. The RSI trend also points to higher prices in the short term.